Circle Shares Slide After Mizuho Lowers Target on AI Threat to USDC
Circle Internet Group shares fell 7.2% on October 26 after Mizuho lowered its price objective to $43 from $45 and kept an Underperform view. Mizuho’s testing indicated that AI financial assistants may steer users toward higher-yielding, FDIC-insured accounts instead of USDC, or toward other crypto platforms. The firm estimates a potential medium-term reduction of $4 billion to $9 billion in USDC market capitalization and a 10% to 20% decline in Circle’s reserve revenue.
Why it matters
Mizuho’s estimates indicate a potential threat to the reserve income that supports Circle’s business if AI-driven recommendations change where users hold cash. The estimates describe a possible future impact, not a confirmed reduction in USDC balances or realized revenue.
Key facts
- 1Mizuho set its price target at $43, down from $45, and retained an Underperform rating. cryptotimes.io
- 2Mizuho estimated that USDC market capitalization could decline by $4 billion to $9 billion over the medium term. cryptotimes.io
- 3The research firm estimated that 10% to 20% of Circle’s reserve revenue could be at risk. cryptotimes.io
- 4Circle shares traded at $79.72 on October 26, after falling $6.19 from Friday’s close of $85.91. cryptotimes.io
Summary written by AlphAI AI Desk from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.